Real Estate & Mineral Rights
By Dave Miedema Real estate may be an ideal asset for you to consider using as your investment in medical and health sciences education, research, and service at the School of Medicine and Health Sciences. The University of North Dakota Foundation has received many gifts of real property over the years, including farmland, residential, and commercial property. The Foundation has extensive experience recommending the most tax-wise and appropriate gift methods for donors and their counsel to consider. Particularly in North Dakota, where farmland prices are soaring and mineral rights are highly sought, now may be an ideal time for you to consider a gift of such appreciated assets.
For additional information on how to best structure your bequest or gift to benefit the School of Medicine and Health Sciences, please contact: Dave Miedema, Director of Development School of Medicine and Health Sciences UND Foundation firstname.lastname@example.org (701) 777-4933 (800) 543-8764
NORTH DAKOTA MEDICINE Spring 2012
The most common method of contributing real property is an outright gift. Donors receive a charitable deduction equal to the property’s appraised fair market value, and most often, the Foundation immediately liquidates the gift and invests the proceeds, generally into an endowment named for the donor. Before acceptance, the Foundation will conduct its due diligence, needing to be confident of the property’s marketability and environmental cleanliness. Other options exist where real estate may be contributed to fund an income arrangement, such as a charitable trust. In this case, a donor transfers real property into the trust, receives some income tax deduction benefit, and generally receives income back for life. Upon maturity, the balance of the trust becomes a gift benefiting the School of Medicine and Health Sciences. Additional options for making gifts of real estate are available, and depending on your situation, we will recommend techniques that best fit your charitable and financial goals. We will help you address questions such as, “How do I make a gift of real property? May I contribute my house and still live in it? Should I sell first, and then give the proceeds? How may I direct my gift to be used for the benefit of the School of Medicine and Health Sciences?” These questions and others can be answered by me or other UND Foundation gift planners. Please contact me today, and let’s begin the conversation.
North Dakota Medicine Spring 2012